Colorado ended 2022 with continued strong job growth and is outperforming the nation in many areas, according to a report released Monday by CU Boulder and Colorado Secretary of State Jena Griswold.
The Quarterly Business and Economic Indicators report is prepared by the Leeds Business Research Division (BRD) at CU Boulder in conjunction with the Colorado Secretary of State’s Office. The latest report for the fourth quarter 2022 shows that Colorado recorded 48,806 new entity filings, posting the largest quarter in the report’s history. Filings increased year-over-year by 37.2% and 11.8% quarter-over-quarter.
However, delinquencies and dissolutions also were also up year-over-year. There were 13,293 dissolutions in Q4, up 17% year-over-year and 14.5% from the previous quarter.
- Q4 2022 economic indicators report for the state of Colorado
- Colorado Business and Economic Indicators Dashboard
Existing renewals remained positive, increasing 2.9% (171,210 renewals) in Q4 year-over-year and 4.5% quarter-over-quarter.
“Colorado has continued our upward economic trajectory,” said Secretary Griswold. “With another strong year of employment gains and continued job growth, new business entity filings growing at a record pace and inflation diminishing faster than the national average, Colorado continues to lead when it comes to owning and operating a business.”
Inflation in the state continued to improve but remained high. In the Denver-Aurora-Lakewood region, the Consumer Price Index (CPI) increased 6.9% year-over-year in November 2022, compared to 7.1% nationally.
December 2022 employment growth in the state increased 3.7% (104,700 jobs) year-over-year, good for eighth best in the nation. The largest annual percent increases came from the following sectors: other services, professional and business services and leisure and hospitality.
Resident employment in the state (based on the household survey which includes the self-employed) increased by 100,000 (3.3%) year-over-year in December. Resident employment growth outpaced labor force growth (up 74,000, or 2.3%, year-over-year), as the number of unemployed workers declined––which has created conditions that feel similar to a worker shortage.
“Businesses have been vocal about a worker shortage for years,” said Rich Wobbekind, senior economist and BRD faculty director. “What the current data is showing us is that, while Colorado has the second-highest labor force participation rate in the country, employers are latching on to most available workers. These current conditions are perpetuating the semblance of a worker shortage from the employer perspective.”
The state’s high labor force participation rate is driving down the unemployment rate and pushing up wages. Colorado’s unemployment rate fell to 3.3% in December, below the national rate of 3.5%.
Colorado per capita personal income of $75,557 ranked seventh nationally, and per capita personal income growth (7.9%) ranked first for the second consecutive quarter.
Real gross domestic product (GDP) in Colorado grew 3.2% year-over-year in Q3, sixth highest in the nation. Real GDP in the nation also grew 3.2% in Q3.
Retail gasoline prices continue to yo-yo in the state: Prices began to normalize in late 2022 after spiking earlier in the year, according to the Energy Information Administration. In January 2023, prices were down $1.22 per gallon in the state compared to the June peak, but prices in mid-January were up $0.92 per gallon from the end of December.
You can find monthly information on key economic statistics and trends that impact the state on the Colorado Business and Economic Indicator Dashboard, launched by the Colorado Secretary of State's office in conjunction with BRD.